Banco De Sabadell Sa Ord (BNDSF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning all and welcome to the Sabadell results presentation for the first quarter 2025. Today, we are joined by our CEO, César González Bueno, and our CFO, Sergio Palavecino. The presentation will take the same structure as previous quarters. Our CEO will begin by outlining the key developments of the quarter, followed by a discussion on the most significant topics. Next, our CFO will cover financial results and balance sheet developments before our CEO concludes with some closing remarks. Finally, we will open the floor for a live Q&A session. I will now hand over to César González Bueno to kick off our presentation. Thank you, Juk. Good morning, everyone. I will start going through the key elements of this quarter in slide 4. The strong momentum in commercial activity continues. Performing loans grew by 5% and customer funds increased by more than 6% on the year. Secondly, asset quality remains strong. The NPL ratio fell to a new low of 2.67%, which is 79 basis points less than in the previous year. This translates into a substantial reduction of the cost of risk. At the end of the first quarter, the group's total cost of risk stands at 35 basis points. Thirdly, NII declined by 1.3% year-on-year due to lower interest rates and de-risking carried out. It remains resilient in a lower interest rate environment. Fourthly, on the 31st of March, we started the first of our two share-by-backs programs, which together amounted to $1 billion. As of 2 May, we have already repurchased 213 million euros, representing 21% of the 1 billion announced and 86 million shares. Once we conclude the first programme of 247 million, we will redeem the corresponding shares without waiting for the end of the second programme, which amounts to 755 million euros. Last but not least, ou...